The head of Canada’s largest trucking company says widespread misclassifications of drivers are harming companies like his as well as drivers, a problem felt even more acutely during a difficult time for the Canadian economy.
TFI International President and CEO Alain Bédard calls the phenomenon known as “chauffeur inc.” “disaster” for trucking companies, as rivals who break the rules gain a competitive advantage.
“Chauffeur inc. » refers to the misclassification of workers as self-employed, meaning the company does not pay benefits or provide basic labor protections.
So-called contractors who drive for one company and have no control over their schedules are illegal – and risky, because workers lack basic rights such as workers’ compensation, overtime, paid leave or severance pay.
Mr. Bédard says the disadvantage will diminish when demand picks up after a difficult year, but insists the federal and provincial governments must do more to crack down on offenders.
Although Ottawa has taken some steps to alleviate the problem, truckers and owners say the crisis continues to worsen due to a delay in enforcing the law.